Aviation Newsletter - August 08 to August 12, 2011

India Infoline News Service | Mumbai |

A proposal for a joint management committee was dropped at the last minute to avoid duplication of command, reports quoted a source as saying. According to reports, Nandan who is expected to take over on Friday, is an Indian Administrative Service officer belonging to the 1982 batch.

Top Stories
 
Air India...Arvind Jadhav out, Rohit Nandan in
Rohit Nandan, a Civil Aviation Ministry official will reportedly takeover as the head of Air India, replacing CMD, Arvind Jadhav. Reports quoted sources as saying that Jadhav’s services are being terminated and Nandan is being appointed CMD temporarily. A proposal for a joint management committee was dropped at the last minute to avoid duplication of command, reports quoted a source as saying. According to reports, Nandan who is expected to take over on Friday, is an Indian Administrative Service officer belonging to the 1982 batch.
 
Kingfisher Airlines Q1 net loss at Rs2.64bn
Kingfisher Airlines’ total revenue for Q1 FY12 was Rs. 19.11bn which is a 15% improvement over the same quarter last year. Increase in capacity, higher load factors, and improvement in yield contributed to the revenue growth. The company's first quarter loss widened to Rs2.64 bn from Rs1.87 bn a year earlier. The momentum in Indian aviation industry has continued with a strong demand growth of 15% in Q1 FY12. Even though the capacity growth at 19% slightly outpaced the demand growth, Kingfisher Airlines effectively capitalized on its strengths to achieve a 4 percentage point increase in domestic load factor. In the same period, industry load factors experienced a decline of 2 percentage points. For the quarter ended Q1 FY12, EBITDAR was Rs. 2.52bn as against. Rs. 3.4bn in FY10. EBITDAR margin for the year was at 13% as agaisnt last year at 20%. This profitability was achieved despite additional fuel cost burden of Rs. 2.6bn. The company reported an operating EBITDA profit of Rs. 46mn in Q1 FY12 compared to a profit of Rs. 990mn in Q1 FY11. The overall EBITDA margin for the quarter was 0.2%. Growing maturity of international routes was a major contributor to the improvement as the EBITDA loss on international operations reduced to Rs. 400mn in Q1 FY12

 

Air India loan recast to take three months: report

Civil aviation minister Vayalar Ravi has reportedly said that the  financial restructuring plan of ailing state carrier Air India will take about three months to complete. The report state that Air India is in talks with banks to restructure $4 billion of working capital debt and is in the midst of implementing a turnaround plan.
 
In Focus Stories
 
Boeing, Cathay Pacific announce order for 12 777s
Boeing and Cathay Pacific Airways announced the Hong Kong-based carrier has ordered eight Boeing 777 Freighters and four 777-300ER (extended range) airplanes. The order is valued at US$3.3bn at list prices. With this announcement, Cathay Pacific becomes the 15th customer to order the 777 Freighter and increases its Boeing 777-300ER fleet to 50.
 
"We are very pleased to announce this latest Boeing order, which highlights our commitment to operating a modern and efficient fleet together with a deep commitment to our home city, Hong Kong," said John Slosar, Cathay Pacific Chief Executive. "The Boeing 777-300ER is a superb aircraft that has already given a significant boost to our long-haul passenger operations, while the Boeing 777 Freighter will improve our freighter operations by delivering improved payload range capability at competitive operating costs."
 
"The Boeing 777 Freighter, together with the other new aircraft types, will provide us with exactly the right balance in our fleet portfolio through to the end of the decade along with a more efficient and environmentally friendly operation," Slosar added.
 
Aviation minister sets up 7-member panel for IGI Airport's power failure: report 
Civil aviation minister Vyalar Ravi has set up a seven-member committee to look into  IGI Airport's power failure, according to a report. The report stated that the committee has been asked to examine the reason behind the extended power cut and the failure of the backup systems. Apart from an internal probe, DIAL has appointed an independent technical auditor to review T3's power supply scheme and submit its findings, says report
 
Domestic News
 
Air India Dreamliners delayed by two months 
The delivery of the Boeing 787 Dreamliner to Air India has been delayed by another two months to December, according to a report.Air India official has reportedly said that they have been informed that the first two 787s will come in December because of delays in receiving clearances from the Federal Aviation Administration (FAA).
 
The report stated that the projections are that medium-haul international routes will be the future markets for Air India.Once AI gets delivery of all 787s it has ordered, it plans to reopen lucrative sectors and augment services to key markets such as Malaysia, Hong Kong, Osaka, Jakarta, Dubai and Frankfurt, says report. There are reports that Air India is fighting with the Boeing Company for compensating it on an almost three-year delay in delivering the Dreamliners.
 
Boeing, Siemens form strategic alliance for DOD Energy modernization
Boeing and Siemens today announced a strategic alliance for the joint development and marketing of "smart grid" technologies to improve energy access and security for the U.S. Department of Defense (DOD), the largest energy consumer in the federal government. The collaboration centers on providing U.S. military installations with secure microgrid management solutions that lower operational costs and increase energy efficiency
 
Air India Express plans to hire ex-IAF pilots: report
Air India Express has reportedly said that it would soon ink an agreement with the Indian Air Force to train the pilots besides netting the early IAF retirees into the airline. Air India Express official also said that they continue to face severe shortage of senior pilots, which is impacting the operations and hurting our growth.
 
Govt has no plan to privatise Air India
 
MIAL to host ICAO training session
 
Air India’s recurring default is negative for banks: Moody's
 
Air India plans to start low-cost domestic airline: report
 
flydubai announces flights to Ahmedabad
 
International News
 
Virgin Atlantic Airways returns to profit, creates 1,000 jobs
Virgin Atlantic has announced an £100m investment in product development as it reported a strong year of trading and a return to profit.  Despite the winter closure of London Heathrow and the Ash Cloud crisis costing the business a combined £40m, strong growth in business traffic and solid load factors across all cabins delivered a good recovery.Revenues have increased on the airline’s route from London Heathrow to Delhi, India, driven largely by sales in India. Demand remains high with a positive 80% seat load factor.
 
The Pre-tax operating profit was at £18.5mn, while Revenues increased by 13% to £2.7bn
 
Michael Burke, Country Manager in India said: “Virgin Atlantic in India has made a positive contribution to the airline’s overall 2010/11 results.
 
“Loyalty to Virgin Atlantic continues to grow.  Last year we saw a 13% growth in our Delhi to London business reflecting a rebound in confidence particularly in the business travel sector.”
 
Steve Ridgway, Chief Executive of Virgin Atlantic, said: “We have demonstrated the resilience of our business by weathering the toughest economic period for aviation and have now returned the business to profit.
 
The Pre-tax operating profit was at £18.5mn, while Revenues increased by 13% to £2.7bn
 
Cathay Pacific reports profit of HK$2,808 mn for H1
 
Virgin Atlantic introduces contest on occasion of Independence Day
 
Fly smart on Emirates with MasterCard this travel season
 
Cebu Pacific finalises order for 30 A321neo aircraft

 

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